Tuesday Gov. Bill Richardson unveiled a handful of tax cuts for the next legislative session.

"Personal income taxes are up, corporate income taxes are up and gross receipts taxes are up 13 percent," said Richardson.

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New Mexico will once again have more than $500 million that the state has not yet earmarked for spending.

That extra money is from a healthy economy, and oil and gas revenues.

The governor is proposing a tax cut for working families; those making $11,000 and $36,000 a year. He also wants to increase the amount each exemption is worth on some returns, and ease the gross receipts, or sales tax for rural hospitals.

A couple of the governor's flashier tax cut initiatives involve the military. Those on active duty would not be forced to pay state income tax on what they earn. For those who are military retirees and decide to take a second job, they will only pay tax on half of what they earn.

That concept is an old idea that couldn't make it through past lawmaking sessions. Now, many lawmakers seem to be on board, thanks in part on the idea that some of the cuts will eventually generate money.